Question

Explain which of the theories relate to Taiwan’s trade policy during each of the eras that are described in the case "The Evolution of Taiwan's International Trade." If you were the manager of a US company doing business with Taiwan, would you agree with Taiwan's trade policy? Why? Why not?

Answer 1

1910-1945 :- Initialy japan is developing the infrastructure such as transportation, irrigation due to this increase in export of rice, sugar from Taiwan that makes a huge export develoent 940%

1946-1949:- in this era taiwan also want to export the good and it produces the goods which was previously imported

1960-1964:- in this era taiwan government encourage the production company with tax relaxation and incentives to foreign capitals for build factories and increase the production of cloth shoes and labour equipment which also increase the export

1965-1969:- laws are set to new export process zone offering incentives for the foreign enterprizes which sets in taiwan with in 2 years it genrate 7.2 M us dollor

1970-1979:- export oriented goals are continue and in this era they produces steele or infrastructure products

1980-1989 in tis era taiwan incentive policy in tax are restricted to foreign enterprizes thats why technical units which increase the electronic market in taiwan.

1990-1999- taiwan was a hivhtech industry in this era in 1992 GATT council hire a WTO and china helps taiwan to build more productive due to lesser involvement of foreign industries they get higher export rate and sales or remain safe from asian crisis

2000-2003:- taiwan becomes a larger computer hardwere production and exporter country with the help of china and they both admited in world trade organization followed by japan

Conclution ir my view - If i was the mannager of US company then i dont want to do inveatments in taiwan because they dont want to share the profit to other enterprizes taiwan just wnt to develop their production sector they Fully ignored the industrial policy for other investments. They use the foreign interprizes just like a ladder to get on the top.